How will the autonomous car effect the automotive industry?
To start off, the car industry will see a seismic shift when it comes to ownership. With the availability of cheap, per-service transport options – like Uber and Lyft – car ownership will no longer be a necessity. For the consumer, this means a significant reduction in transportation costs. For the manufacturer, this means a change in how cars are produced and marketed. It no longer makes sense to have personalized options like leather seats. Instead, manufactures would need to focus on offering a roomy, comfortable, and work-friendly backseat.
The technology market will continue to grow. There will be a demand for extras like in-vehicle Wi-Fi and infotainment systems. ADAS options will continue to improve. Companies like Uber and Lyft have invested heavily in start-ups which focus on advancing vehicle ADAS systems. Google, Nvidia, Tesla, and BMW are already completing trial runs.
There will be a rise in the demand for better production material. There will be a search for light-weight and tough, crash-resistant materials.
The autonomous car will impact several industries connected to the manufacture and sale of vehicles. Dealerships, finance companies, and insurance companies will need to change the services they offer. The second-hand car industry will see a major contraction as demand for used vehicles declines.
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For this blog, we referred to an article by Global Manufacturing.